Mother & Daughter Blog: November 2009

Is your buyer willing to pay the difference between the appraised value and what their offer is for?When it comes to cash and conventional financing, the sellers are finding another loop hole. 

>>forcing higher bids, countering the appraisal contingency out, THUS: no price reduction = Banks gets more for the property, Buyer feel like they are getting screwed!  Win-win for the banks - once again!

Is this a good method or is it adding to the False Market Value issues

  You can look at this a couple of ways:

1. Did they list low on purpose?
2. Does the seller no have any trust in the appraisals they are getting?
3. Is this just a way to get more money, more money for the property?
4. Do they like getting multiple offers so they have buyers compete, then not have to reduce the price when the appraisal comes in at FMV
5. Is this an insult to the Fair Market Value process?
   

Just a while back this was a question that not many would ask. But nowadays… it is starting to become a habit. In the last couple of weeks I have had several listing agents ask me this. I am not sure if they even submitted the offer to the seller before they ask this question.

Here I am out there trying to education my buyer that the listing agents are listing properties low in order to get attention to the listing and to pull in more offers to submit multiple offers to the seller. This does a couple of things:

• Makes the listing agent look good to the seller
• And it gives more money for the property to the seller
• Plus one more thing…. It is messing with the market – making it look like the market is going up when it is really being forced up with this and other tactics.

When you present this question to a buyer, they turn around and look back at you and ask..

• why would I want to do that?What is the purpose?
  
• Doesn’t that mean that I am purchasing a house that I will be in the hole for right off the bat?
• How much over the appraised value am I expected to pay?

This type of buying is leaving the buyers scratching their heads wondering is it right, what should they do, what next and although these questions are being asked ---> there are no real answers that make sense for this approach. Is there?

 

 

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Just a little something to make you THINK and smile...... and it has nothing at all to do with:

• Foreclosures,
  
• Short Sales,
  
• REOs,
  
• Bank Owned Properties,
  
• Market Conditions,
  
• Cash for Keys,
  
• Evictions,
  
• Trash outs
• Lawn service
• Code Enforcers
• Tenants,
  
• Rentals,
•  Listings,
  
• Low ball offers,
  
• Offers of any kind,
  
• Bank Acceptances,
  
• FHA,
  
• 203k Streamline Renovation Loans,
  
• HomePath.com
• Mortgage,
  
• Loss Mitigation,
  
• Real Estate
  
• or does it?

....................................................................>>>

 

Quote of the day:

 

 

'Whatever you give a woman, she will make greater. If you give her sperm, she'll give you a baby. If you give her a house, she'll give you a home. If you give her groceries, she'll give you a meal... If you give her a smile, she'll give you her heart. She multiplies and enlarges what is given to her. So, if you give her any crap, be ready to receive a ton of __________!'

Call us at 866-543-0461

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Now that I am focusing on buyers more, I am finding out some interesting and yet confusing stuff about buyers out there.

When you first meet the buyer they tell you what they are looking for and they sound and seem to have a good idea and have it all listed out for you.  

• You put together a "information sheet" on your buyers and begin your search for the specs that they provided. 
• You set your MLS to send daily report of the new listings to your buyer and you get a copy too.

You work on that report on a daily basis to see what showed up on the report and how it can match what your buyer is looking for.

• You have already covered your buyers on the differences between a REO and a short sale. 
• You have already covered the market condition with your buyers. ** may have to do this a few more times as you goout viewing house to house
  
• You already know if they are going to occupy the property or if they are investors
• You have either determined that your buyer is a good candidate for trying to get a short sale or that they should steer away from then and try for the REOs or traditional sales due to time restraints or they have already told you they don't have the patience for waiting on a short sale approval.

Once that second or third day comes around, your buyers are calling you to see when can they go out and see the properties that they have driven around the neighborhoods to find!! They may end up saying nothing about the available listings that was included in the report.

• NO!... they want you to look up what they found - vacant homes through the neighborhood!
• So you go on and look up the properties and give the buyer a full report on each.  Then you get set to go out and view the available properties.

After going to three or four properties and realize that this is going to be much longer than you thought, you put on your smile and check your list to see what else might fit your buyers.... and this goes on for weeks.

Most of your buyers want to put offers in on almost every house they see... and with the market as it is these days -this is not necessarily a bad idea.  You feel it is your obligation at this point to let the buyers know that usually the way it goes is you spend hours looking and putting offers and more .......you are almost ready to resolve that you are just not going to find a home that you can get the bank to accept your offer on... and then WHAM!

Then one day you finally get a call from the listing agent to say the seller is interested in your offer on a property.  You literally jump for joy.  Then you start you uphill climb all over again when you call your buyer and they just don't seem interested in that property at all.  All you hear is disappointment, no concern or interest in the property after all!  They actually turn down the seller's acceptance.

You scratch your head and get ready to start all over again.  And you wonder how many times will it happen like this.

Yet you love being a Buyer's Agent..... you really do!

 

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Here are some good questions and answers about Short Sale and the process. All homeowners should read this.

Rosemary Brooks

Patrick Williams & Associates

Homeowners do you really want your bank account(s) frozen? Do you need another hardship after short sale? Or will you have to hide your money under your mattress to keep it warm?

This is what can happen after the short sale and after you have signed a deficiency note that the bank used forceful words to get you to sign it or else.  Take a deep breathe and think before you sign this note.  It stands to reason that if you are in hardship now, it could happen again!

So what make the banks ask you to sign a deficiency note? Some banks have no reason, it seems.  While some homeowners signed a note on the property and one being a personal note (this is usually what they will attack).  But asking for the homeowner to sign a deficiency does not have to be associated with a personal note, it can just be the bank trying to get the homeowner to pay something back to them for their “loss”.

Usually this occurs with the second lien because they end up getting very little from the Short Sale and will not approve unless they force the homeowner to sign a deficiency note, BUT it is not limited to the second lien, first will do it too.

Again, if you are already in a hardship and you have experienced it once don’t do anything to bring it on again.  Banks can freeze your accounts (especially when it is the same bank that you did the short sale with), but it is not limited to just that bank the way these bank end up buying out other banks and deficiency notes.

This can impact can affect more than the homeowner --> if the bank account has others on the account (ie. Co-signer).

If your bank request that you sign a deficiency note, make sure you put in writing that you cannot afford to sign this type of note (if you are in hardship this would be more than the truth) and if you do not want to find yourself in another bad situation…. Think it out and put it in writing to that bank.

Be careful what you sign, get advice on it before you sign it.  Go to a professional to get that advice.

 

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I am re-posting this because it is the up and coming new process.  In order for the word to get out, the process, the rules and guidelines -- we must inform other agents, homeowners and buyers.

Well worth re-blog.

Need a short sale agent in the Central Valley: San Joaquin/Sacramento/Stanislaus/Merced/Alameda/Contra Costa Counties -- give us a call at 866-543-0461.

Rosemary Brooks

Patrick Williams & Associates

The Mother and Daughter Realty Team

www.motheranddaughterrealtyteam.com

 

 

 

 

This is a real good short sale source.  The media should focus on short sales to help get the banks to moving on approving them at a faster pace.  Short sale deserve to get media attention at this point.  This is a great post and well worth re-blog.

If you need a short sale specialist for the San Joaquin Central Valley (Sacramento to Merced) or the Alameda, Contra Costa Counties give us a call!

Rosemary Brooks

Patrick Williams & Associates

the Mother and Daughter Realty Team

PH: 866-543-0461

FAX: 866-815-1649

EMAIL: info@motheranddaughterrealtyteam.net

WEBSITE: www.motheranddaughterrealtyteam.com

 

 

The woes of short sales... continues.

 

Announcing a change... Change is good!

We are proud to announce that The Mother and Daughter Realty Team is now working under a new broker: Patrick Williams & Associates.  Our service will continue and improve with our new move.

Patrick Williams & Associates is proud to announce its association with Rosemary Brooks & D'Adrea Davie - the Mother and Daughter Realty Team. An integral part of Patrick Williams & Associates' dedication to excellence is the collaboration of high caliber, capable professionals. Serving the real estate industry for 7 years, the Mother and Daughter Realty Team certainly fits that profile..

This Team brings a wealth of professional experience to their clients. The Mother and Daughter Team's trustworthiness, dependability and dedication to their clients are unparalleled.  Their client needs are always put first.  With their experience for over 7 years in the real estate industry and has successfully helped individuals and families just like you realize their real estate dreams.

When you work with the Mother and Daughter Realty Team you know your needs will be handled in the most professional manner. Their acute listening skills and attention to detail make Rosemary and D'Adrea a tremendous asset for any home seller or buyer.  Rosemary & D'Adrea are always looking for the most cutting-edge technology to market their client's homes and looks for opportunities to continue their education and grow professionally. Being ahead of the curve is what both Rosemary and D'Adrea strive to accomplish.

When you work with this Team once, you'll want to call them again when your real estate needs change. They make a lasting impression on their clients.

Rosemary & D'Adrea clients describe them as very professional, diligent, straightforward and committed to their clients. They always put forth a tremendous effort and is very attentive. Both Rosemary & D'Adrea are forthright professionals with a heart of gold. 

Then next time you're in the market to buy or sell a home be sure to call the Mother and Daughter Realty Team, you won't be disappointed.

Rosemary Brooks & D'Adrea Davie joins a group of distinguished real estate professionals who are all part of the most sophisticated and technologically advanced market firm, specializing in distinctive properties and estate. Patrick Williams & Associates is dedicated to excellence and our most recent association with Rosemary Brooks is a bright example.

 

 

So how many pre-approvals does one buyer really need?

One of the frustrations that agents and buyers experience is that while searching listings, you run into properties that require that the buyer get an additional pre-approval from that seller's preferred lender.

Now this does not sound like a big deal if you only had to do that with one other lender, HOWEVER.... This is not the case!  With the market condition (one of the highest hit foreclosurethe way it is - in the San Joaquin Central Valley and in the Alameda/Contra Costa counties of Northern California it is a lot of extra work, paperwork and time to get all of the pre-approvals before you can submit an offer on these bank owned properties.

Out of 10 new listings 5 had pre-approval requirements that included going to the seller's (Bank Owned Property's preferred lender for yet another pre-approval).  So which banks are asking for this?  Even if your buyer has a pre-approval from a direct lender - they still want this extra pre-approval!  These banks I have found to be more demanding of this extra pre-approval:

• Wells Fargo
• Bank of America
• Prime
• Prospect Mortgage
• OneWest Bank
• IndyMac
• Chase

 **HomePath but they do not require - yet!

It does work out better when your buyer's lender is willing to submit and request these pre-approvals for the buyer.  Now that is a good lender when they know that they can run the risk of loosing the buyer!  Terrie Nevis from Platinum Mortgage is direct lender that will work with the buyer to help them get these extra pre-approvals and I would like to add that Terrie and his team over at Platinum make sure their pre-approvals are solid.

 

Call us at 866-543-0461

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